| | Philips reports full-year net income of EUR 2,868 millionFourth-quarter net income of EUR 332 million |
| Full-year net income increased to EUR 2,868 million (EUR 2.29 per share), compared to the EUR 2,836 million (EUR 2.22 per share) reported for 2004. In-the-quarter net income amounted to EUR 332 million (EUR 0.28 per share), compared to net income of EUR 498 million (EUR 0.39 per share) in the corresponding period of 2004, mainly driven by incidental results from unconsolidated companies and the advancement of a tax charge related to TSMC. Full-year sales reached EUR 30,395 million, representing 4% comparable growth compared to 2004 sales of EUR 29,346 million, excluding sales of Mobile Display Systems, which has been treated as a discontinued operation in both 2004 (EUR973million) and 2005 (EUR 653 million). Fourth-quarter sales increased to EUR9,518million, 6% above Q4 2004. Adjusted for the upward effect of currency movements and consolidation changes, comparable sales increased by 4%. All five operating divisions contributed to the comparable sales growth, led by Medical Systems, Semiconductors and Consumer Electronics. Income from operations for full-year 2005 amounted to EUR 1,779 million, a EUR 193 million increase compared with 2004. In Q4 2005, income from operations amounted to EUR 971 million, compared to EUR 15 million in the same period of 2004. Q4 2004 included a non-cash impairment charge of EUR576million for MedQuist. Q4 2005 showed significant improvement in income from operations at Semiconductors and benefited from a EUR 187 million release of a provision for post-retirement medical benefits, partly offset by charges of EUR 46 million relating to certain billing issues at MedQuist. In the quarter, financial income and expenses resulted in income of EUR23million, compared to income of EUR 417 million in Q4 2004, which included a EUR 440 million gain on the sale of shares in Vivendi Universal and ASML. Income from unconsolidated companies decreased from EUR 198 million in Q4 2004 to a loss of EUR 70 million, mainly due to charges of EUR 458 million related to LG.Philips Displays. Cash flow from operating activities of EUR1,889million was slightly higher than in Q4 2004. Net inventories as a percentage of sales increased compared to Q4 2004, largely due to currency effects. Gerard Kleisterlee, Philips’ President and CEO: “On the back of a strong product line-up, we accelerated growth and increased profitability. We also executed our management agenda for the year, making Philips a more focused group, able to deliver a consistent performance while continuing its transformation into a market-driven healthcare, lifestyle and technology company. With a clear view to creating shareholder value during 2005 we took measured steps, balancing investment in growth with returning capital to shareholders. We initiated two share repurchase programs alongside two acquisitions aimed at giving us a solid footing in the key emerging growth markets of healthcare IT and solid-state lighting. We also put in place the right fundamentals to create a more competitive Semiconductors business with our decision to create a separate legal structure. We gained some good momentum this year, and are confident of meeting our targets.” |
| | | Philips' 2005 Annual Results press conference will be available here as from 11:00 CET on January 23, 2006. When opening the webcast for the first time, please wait while the program automatically selects the most suitable bandwidth for your computer. |
| | Click below to view Philips' Annual results 2005 results presentation. |
| | President/Chief Executive Officer Royal Philips Electronics |
| | | | Chief Financial Officer Royal Philips Electronics |
| | | Philips announces 2005 Annual Results |
| Jan 23, 2006, Royal Philips Electronics today announces its 2005 Annual Results. The figures will be presented by Philips CEO Gerard Kleisterlee (pictured with VoIP videophone) and CFO Pierre-Jean Sivignon.
The cordless VoIP (Voice over Internet Protocol) videophone VP5500 provides consumers with a simple solution to connect with friends, family and business associates via a broadband connection, supported by video or chat applications. |
| | | The Philips iU22 system combines Intelligent Design, including breakthroughs in ergonomics, with Intelligent Control, providing new levels of automation, to give you revolutionary performance and workflow.The iU22 system is changing the world of ultrasound. © PHILIPS - THIS PHOTOGRAPH IS FREE FOR EDITORIAL (NON-COMMERCIAL) USE WITH PHILIPS-RELATED SUBJECTS |
| | | | Philips Automotive Lighting creates active safety technologies which interweave technical innovation with a genuine concern for the safety and driving comfort of rivers. The NightGuide range of lamps projects refined and focused light into three colour zones that provide today's driver with the right visual information at the right time. © PHILIPS - THIS PHOTOGRAPH IS FREE FOR EDITORIAL (NON-COMMERCIAL) USE WITH PHILIPS-RELATED SUBJECTS |
| | | | The innovative SmartTouch-XL incorporates the very latest in shaving technology. Thanks to the SmartTouch Contour-Following System, the entire head of the shaver as well as the individual shaving heads can move, closely following the curves of your face. The Speed-XL shaving heads provide 50% more shaving surface and have more blades to catch more hairs, and more slots and holes to catch shorter hairs, giving you a really close shave in fewer strokes with less irritation. © PHILIPS - THIS PHOTOGRAPH IS FREE FOR EDITORIAL (NON-COMMERCIAL) USE WITH PHILIPS-RELATED SUBJECTS |
| | | | Philips is making the storage, management and enjoyment of a CD collection impler with the introduction of music systems which can store hundreds of CDs and stream that music wirelessly to satellite stations anywhere in the house. © PHILIPS - THIS PHOTOGRAPH IS FREE FOR EDITORIAL (NON-COMMERCIAL) USE WITH PHILIPS-RELATED SUBJECTS |
| | | | Philips' TV-on-mobile technology provides consumers with live access to news, sports highlights, music videos, interactive programming and more on mobile phones, personal media players (PMP) and other small portable TV devices. The Digital Video Broadcast - Handheld (DVB-H) front-end solution, BGT211, delivers low-power consumption, enabling manufacturers to offer consumers the ability to watch TV for hours before needing to recharge. © PHILIPS - THIS PHOTOGRAPH IS FREE FOR EDITORIAL (NON-COMMERCIAL) USE WITH PHILIPS-RELATED SUBJECTS |
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| | | | | | | For further information please contact:Gerd Götz Philips Corporate Communications
Tel: 31 20 59 77 217
Email: gerd.goetz@philips.com |
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| | | | About Royal Philips ElectronicsRoyal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 30.3 billion in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 161,100 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.philips.com/newscenter Forward-looking statementsThis document contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, in particular the outlook paragraph in this report.
By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, levels of consumer and business spending in major economies, changes in consumer tastes and preferences, changes in law, the performance of the financial markets, pension costs, the levels of marketing and promotional expenditures by Philips and its competitors, raw materials and employee costs, changes in exchange and interest rates, changes in tax rates and future business combinations, acquisitions or dispositions and the rate of technological changes, political and military developments in countries where Philips operates, and industry consolidation.
Statements regarding market share, including as to Philips’ competitive position, contained in this document are based on outside sources such as specialized research institutes, industry and dealer panels in combination with management estimates. Where information is not yet available to Philips, those statements may also be based on estimates and projections prepared by outside sources or management. Rankings are based on sales unless otherwise stated. Use of non-US GAAP information
In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-US GAAP financial measures. These non-US GAAP financial measures should not be viewed in isolation as alternatives to the equivalent US GAAP measure(s) and should be used in conjunction with the most directly comparable US GAAP measure(s). A discussion of the non-US GAAP measures included in this document and a reconciliation of such measures to the most directly comparable US GAAP measure(s) are contained in this document. Use of fair value measurements
In presenting the Philips Group’s financial position, fair values are used for the measurement of various items in accordance with the applicable accounting standards. These fair values are based on market prices, where available, and are obtained from sources that are deemed to be reliable.
Readers are cautioned that these values are subject to changes over time and are only valid at the balance sheet date. When a readily determinable market value does not exist, fair values are estimated using valuation models which we believe are appropriate for their purpose. They require management to make significant assumptions with respect to future developments which are inherently uncertain and may therefore deviate from actual developments. In certain cases, independent valuations are obtained to support management’s determination of fair values. |
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